Marketing Essentials: Tesco's Strategies and Plan Report

This report provides a comprehensive analysis of Tesco's marketing essentials. It begins by outlining the key roles and responsibilities of marketing functions, emphasizing brand establishment, customer relationship building, and pricing strategies. The report then explores how marketing relates to the wider organizational context, examining the interplay between marketing, human resources, research & development, and finance departments. A significant portion of the report is dedicated to comparing Tesco's marketing mix with that of Sainsbury's, utilizing the 7 Ps framework. Finally, the report concludes with a basic marketing plan for Tesco, summarizing key strategies and objectives.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Key roles and responsibility of marketing functions........................................................1
P2 Roles and responsibility of marketing relate to the wider organization context ..............3
TASK 2............................................................................................................................................4
P3 Comparison of the ways in which different organizations apply the marketing mix.......4
TASK 3............................................................................................................................................6
P4 Basic marketing plan.........................................................................................................6
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the essential tool which helps to identify the different marketing activities of
the business like customer satisfaction, different promotional activities, demand and supply of
product, pricing strategy etc (Gillespie and Riddle,2015). This is the best methodology which
identifying the needs of the customer. Marketing is the process of managing all the external and
internal activities of the company it helps to managing the relationship with the customer,
suppliers and share holders and it also contains the different promotional activities for promoting
the product and increase the buying and selling activities.
Here marketing essential of Tesco will be discussed in the report. It is the British
multinational groceries and general merchandise retailer there headquarter in Welwyn Garden
city, Hertfordshire, England, United Kingdom. Firm provide the variety of products supermarket,
hypermarket, superstore etc.
The report will lay emphasise the roles and responsibility of marketing functions and also
explain the Roles and responsibility of marketing relate to the wider organization context.
Furthermore, report will describe comparison between Tesco and Sainsburry through 7 PS of
marketing mix. Moreover, study will describe the marketing plan for the Tesco.
TASK 1
P1 Key roles and responsibility of marketing functions
Marketing is the process which described the various business activities of the firm. Firm
use this process in their business to identify the needs and wants of the customer. Marketing is
the best tool which helps to attract the customers by their different promotional activities, Tesco
uses the tool of marketing in their business to increase the demand of the product. They improve
their services and quality of product to increase the profitability and sales of the business.
Commonly many small and big firms invest a lot of capital in marketing research to identify the
competitive advantages and customer needs. Therefore, it contains the different tools such as
buying, selling, advertising and pricing strategy, Thus, also entity research the market by
planning, organizing, controlling the process and promoting their business to enhance the growth
of the business(Gretzel,2018). Furthermore, This tool have different roles and responsibility it
helps to Tesco to build the good relationship with their customers, suppliers and different
stakeholders they use this process in the business to enlarge their reputation in the international
market.

Brand establishment
Marketing functions helps to company for establishes the successful brand of the product
by making the best product and services. Customer attract towards the high branded product and
it helps to increase the demand of the product. So marketing function of the Tesco have own
roles' responsibility towards the product that they provide the best services to the customer also
provide the herbal products to create brand awareness(Baker and Magnini, 2016). Tesco
promotes their product by evaluating the different strategies they complete the different task and
establish the successful brand awareness regarding the product and services of the Tesco.
Establish the product and services
Marketing function establish the product and services in the market, Tesco uses the
marketing tool in their business to establish the product in the market by using the different
promotional activities for introduce the retail services(Hisrich and Ramadani, 2018). The
promotional activities is the best tool for increase the demand of the product in the new market.
Therefore, advertisement activities is very essential strategies for every organization when Tesco
launching the new product in the market it is necessary that firm know about that which types of
needs are satisfied the customer and what the customers want, this is the main aim of entity to
ensure absolute satisfaction of the customer.
Establish the pricing strategy
Tesco set their pricing on newly product by using the marketing Strategies. A firm like
Tesco they provide the retail services in the market so they also want to identify that which type
of pricing strategy is suitable for the customer which means customer are likes the pricing of
product and they attract towards the product or not (Ivanova and Rahimi,2016). So Tesco uses
the best pricing in their business to attract the customer, and also satisfying the customer.
Build customer relationships
Marketing functions helps to build the customer relationship, it’s necessary to find the
needs and wants of the customer by making research and communicate with the customers and
understand their ideas in order to find the different needs and wants of the customer(Hugos,
2018). Marketing established the strategy and they create the survey in order to capture the
information regarding the needs of customer. Therefore, marketing is helps to build the customer
relationship.

Track trends and monitor competition
The firm like Tesco, they use the marketing tools in their operations to identify the
competition and then monitor the different trends in the market to incurs the competition.
Therefore, it’s necessary to identify the position of the company in market regarding to increase
the competition in the market (Hisrich and Ramadani, 2018). So marketing function gives the
ideas that how to perform and compete in the market it also helps to learn what Tesco improve
for doing best and also identify the mistakes in order to avoid mistakes.
P2 Roles and responsibility of marketing relate to the wider organization context
Role and responsibility of marketing in the context of Tesco is that they use the different
marketing activities in their business in order to achieve the goal of the firm. To mange all the
department of the firm they use the different strategies. Manage all the activities in different
departments is the necessary work for marketing department (Gretzel,2018). Tesco uses the
strategies to enhance the future competition in the market, As marketing department is set all the
strategies according to the work of department and the departments are depends on strategies and
different techniques which is used by the marketing managers of the Tesco. The marketing
departments influence the customers and also they identify the needs of customer by using the
different promotional activities and provide helps to company for enhance the customer base.
Marketing and Human resources departments
Marketing and human resources departments are interrelated to each other. They both
plays a crucial role in the business. The marketing department gives the ideas to HR department
that which type of people they select for the position of marketing also marketing department
provide the help to HR department and other employees adapt the communication methods and
styles of marketing employees because they have a knowledge about that how to communicate
with customers and employees (Gillespie and Riddle,2015). Furthermore, HR department also
provide the helps to marketing department by provides the best employees in position of
marketing they find the best people to promote and help to build the brand recognization.
Therefore, the HR and marketing departments work together, they both provide the advantages to
Tesco from their ability of collaboration and it helps to increase the customer base.
Marketing and Research &Development Department

Marketing and research departments of the Tesco it is sound like similar, but both
departments have different work. Marketing department analyse the market and research
department research the market. Then they provide the best solution that how to perform in
competitive market and also how to perform in new market with new trends (Baker and
Saren,2016). Therefore, the both departments have own responsibility, Marketing department
manage their work according to the research of Research &Development Department. They both
are provided the help to Tesco because they both provide the information to company that how to
perform in the new market and also how to achieve the objective of Tesco. Therefore, both
department gives the best solution to Tesco for achieving the goal of the firm.
Marketing and finance department
Marketing and finance department of the Tesco they are interrelated to each other because
finance departments gives the budget to marketing department for managing all the activities of
marketing such as promotional, pricing customer relationship, establish brand etc. Finance
departments gives the funds and capital to the marketing department for identifying needs of
customer also helps to identify the demand of product (Baker and Magnini, 2016). Therefore,
marketing department gives the ideas to finance departments that how many funds need to
operating all the activities of the business, Thus, marketing and finance department work together
for achieving the goal of the Tesco and increase the profitability they can help to promote the
values and mission of the Tesco.
TASK 2
P3 Comparison of the ways in which different organizations apply the marketing mix
Marketing mix refers to the combination of factors that are controlled by the company in
order to influence consumers to purchase their products.
Comparison between Tesco plc and Sainsbury
Marketing mix Tesco plc Sainsbury
Product Tesco plc is the British
multinational groceries and general
merchandise retailer. Its products
are in diversified areas such as
clothing, electronics, toys, petrol,
Sainsbury is one of the discount
supermarket chains (Babin and
Zikmund, 2015). Its products includes
food and beverages, organic, skin care,
baby care and laundry.

furniture, software, telecoms and
financial services (Lane, 2016).
Price The price of Tesco plc products are
generally started from premium to
high depends on the product
quality and product range.
Sainsbury has competitively low price
products than the Tesco it gives
various discounting offers to its
customers.
Place Tesco plc runs its operations
mainly in UK but also has its shops
in 7 countries including Asia and
Europe (Rowley, 2016). It operates
from almost 7000 stores all over
the world.
Sainsbury has now more than 1,423
stores in UK in which 815 is
convenience stores.
Promotion Tesco plc do promotions of its
products through putting hoardings
at the centre of cities so that large
number of customers got attracted
(Pike, 2015). It telecast its
advertisement on television and
also organized charitable events as
the promotional channels.
The Company makes good use of the
Above the line and Below the line as
its promotion strategies top retain the
customer's loyalty towards their brand
(Baker and Saren, eds., 2016). It does
advertisement of its products with the
sponsorship of the London Paralympic
games by collaborating with the male
celebrity endorsement David
Beckham's.
People It is leading brand it has lot of
people. Its people are the
employees of the Company who
undergo through selection process.
There are in total 480,00
employees in the 111 markets all
over the world,
It has well trained expertises and
professionals that are aware of the
sensitivity of the consumer behaviour.
It provides training to make their
employees skilled.
Process Tesco plc is designed in such away It has creates the online channel to

that the deviations from the
Company polices are kept to the
minimum (Stern and Porr, 2017).
The other factors have service
features and are considered as the
capacity levels of the Production.
make their customers experience more
personalised. It has also further make
improvement in its pricing strategy and
allocation of delivery slots in order to
attract more customers.
Physical evidence Its merchandise stores and outlets
are the physical evidence of the
Company.
Its excellence strategies to market its
product is taken as the physical
evidence and its different stores and
layouts are addressing the need of their
consumers (Pike, 2015).
TASK 3
P4 Basic marketing plan
Marketing plan for Tesco plc
Executive Summary - The Tesco plc is going to conduct a marketing plan in which they are
going to introduce the innovation in its product. They are going to diversify more into organic
and healthy products in order to resolve the health issues of the people who are suffering from
the issues of obesity. The marketing plan will define the STP and marketing mix of innovation
and also conduct the SWOT analysis and lastly it will do evaluation and monitoring.
Mission - Tesco plc mission statement is to “They make, what matters better together”.
Vision - The vision of Tesco plc is referring to innovation to and to do improvements in their
existing products.
Objective - The objective is to introduce a new range of organic and healthy products to resolve
the health issues of the people such as obesity and diabetes.
Marketing Strategy - Tesco plc is going to invest £1 billion to implement its innovation
in the market. Brand positioning is one of its marketing strategy. There marketing
strategy put emphasis on retaining the customer's retention towards their products
(Tesco Marketing Strategy, 2018). They do advertisement of their products in such

a way that they unified there brand image from the others. The Company is
refocusing on every little Helps that strengthen their Core traditional competitive
advantage at the market place.
SWOT Analysis of Tesco
Strengths
 It is the biggest grocery and merchandise retailer in the UK.
 It has leading market share of 4% in supermarket chain in UK.
 The Company has diversified divisions of the stores. Its diversified products range
includes Tesco Homeplus, Tesco Metro, Tesco Express, One Stop and Tesco
superstores.
 Tesco plc is operating from 7000 stores all over the world.
Weaknesses
 Tesco plc has failed operations in the US and Japan. It fails to export operations forced
to the company.
 The Company has charged fine in fraud Trial and accounting scandal in the year 2017.
 It has faced slightly decreased in the share prices in the year 2018 fells to 9% due to
decline in operating profits (Stern and Porr, 2017).
 It has low cost strategy even though it is marketing leader in the UK.
Opportunities
 The company has recently introduced Jacks a new discount store in order to expand their
business.
 The company has opportunity to do strategic alliance with the other brand in order to
offer products of different market segment.
 It has opportunity to upgrade its online shopping and home delivery services in order to
increase its market share.
 The Company can expand its business in emerging markets like Turkey, South Korea

and Indonesia.
Threats
 There is threat of Brexit referendum to Tesco plc, The trade deals and cost matters had
posted a threat to company.
 There is threat of competitors to Tesco plc such as Sanisbury, Asda stores and
Morrisons.
 Economic crisis and credit crunches can be a major threat to Company.
STP
Segmentation - Tesco plc do demographic, Geographic, Psychographic and Behavioural
segmentation in which demographic its divide on the basis of gender in which it is further
divided in male and females and income is divided in Low and middle category (Campbell,
Martin and Fabos, 2018). The psycho graphic includes the lifestyle in which it is dividend in
Traditionalist and lean conformers. In geographic it is divided in Region and density. In
behavioural the segmentation is done on the basis of Occasions and User status.
Targeting - Tesco plc will provide quality product to the customers to enhance the productivity
and profitability to enterprise (Stern and Porr, 2017). Therefore, chosen firm will come up with
the innovation as to have the use of healthy and organic product for people who are suffering
from issues as obesity. For this, they mainly target “Adults and people of age between 30 to 40”.
By deciding the customer segment, the entity will enable to take further step to enhance
profitability to the organization.
Positioning - The Company will do Price positioning in which they aim to attract specific
customer segment which are the people who are suffering from issues of obesity. The company
will offer reasonable price which is considerable low from their competitors as the prices of
organic and healthy products are generally high in the market (Larson and Draper, 2015). Thus,
the customers easily get attracted towards their products. They go for functional positioning in
which they sale the finest range of organic and health driven products through functional
positioning.
Marketing mix

Product - Tesco plc is going to introduce new product range of organic and healthy products in
order resolve obesity issues. The products will include, health energetic drinks and healthy food
beverages that are cooked with the ingredients which are oil and cholesterol free.
Price - The Company will initially offer the product range of healthy and organic products at
premium price which is considerably low from its competitors as to attract large number of
customers towards their products (Babin and Zikmund, 2015).
Place - The Company will go to introduce these new product range across the UK. These
products are available at all the merchandise stores and outlets of the Tesco.
Promotion - The Company will do promotion of their products through telecasting
advertisement on television and publishing articles in the newspaper (Pike, 2015). They will
also run campaigns to increase the awareness of healthy products among the customers in order
to increase their market share. They will also put hoardings and banners at the centre of the
cities to attract the maximum number of customers.
Budget - It is financial plan that is defined all the projected cost which will required to Tesco
for the implementation of innovation.

Evaluation and Monitoring - The company will evaluate the product through considering
feedback of customers on their offical website after 7 weeks of launching their new product
range (Blythe and Martin, 2019). On the basis of the feedback the Company will do further
improvement to enhance their product quality.
CONCLUSION
The report has been drawn from the above project report it described the different
marketing strategies adopted by Tesco. The report has been concluded the roles and
responsibility of marketing function in the Tesco. Furthermore, it also concluded the marketing
function was related with overall organization such as operational departments, HR departments.
In addition, it has been evaluated the comparison of marketing mix strategy 7 P's of Tesco was
done with Sainsburry. At last a report has been examined the marketing plan of new product
which means Tesco launching new service and product in the market by using the different
marketing strategies. This plan included the SWOT Analysis and Objectives and goals of retail
company etc.

REFERENCES
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Online
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methodology.net/tesco-marketing-strategy/>